Energy trader Gunvor recorded record profits in the first half of the year, as the industry gains volatility in the oil and gas markets created following Russia’s invasion of Ukraine.
The Geneva-based energy trader, billionaire Turbine Turnquist, said on Thursday that its net profit after tax had quadrupled to $ 841 million in the first six months of the year, compared to the same period last year. This is more than the profit for the whole year in 2021.
“Gunvor’s result during this period, driven by massive disruptions in the global market, was based on all regions and activities, including crude oil, petroleum products, natural gas and liquefied natural gas,” Turnquist said in a statement.
“Particularly encouraging is the return of significant profitability in our refining operations and in our shipments,” he said, adding that the reason was mainly tight refining capacity worldwide and strong demand, especially in Europe.
However, trade volume fell by 16% to 99 million tonnes. Revenues increased by 85% compared to the same period last year due to the significant increase in commodity prices.
Commodity traders had a significant boost from volatility and disruption in the commodity markets caused by the plague and war in Ukraine.
Trafigura also posted a record half-year profit of $ 2.7 billion for the six months ended March, while Glencore said in June that it expects earnings from its trading business in the first half of the year to exceed $ 3.2 billion, the top end of the market. Guidelines given regarding earnings for the entire year.
Commodity prices were highly volatile following the Ukraine War. Brent crude soared to a high of nearly $ 140 a barrel in March, but traded about 20 percent below that price until the end of June.
The wholesale gas price of the Dutch TTF also soared to highs in March, before falling sharply. It then nearly doubled in June, when Russia cut supplies through the Nord Stream 1 pipeline to Germany.
Gunvor Said it continues to uphold Russian contracts that have not yet been subject to sanctions, but has not refined Russian crude oil. Its efforts to sell its minority stake in a Russian oil products terminal “have so far not been legally feasible or possible,” it said, adding that it “conservatively adjusted the property’s valuation at the end of June.”
Gunvor has withdrawn from Russia since 2014, when the US imposed sanctions on Gennady Tymchenko, the founder of a Russian partner, over his alleged ties to President Vladimir Putin.
Tymchenko sold his stake to Turnquist just before the sanctions were announced and left the company.
The “vast majority” of Gunvor’s profits will be kept within the company to fund further growth, Turnquist said. It will also continue to invest in non-fossil fuels as part of “supporting energy transition and energy security,” he added.
Commodity trader Gunvor posts record first-half profit Source link Commodity trader Gunvor posts record first-half profit